Bernard Allen (Cork North Central, Fine Gael)
Link to this: Individually | In context

Heineken's decision to close its former competitor in Cork, the Beamish and Crawford brewery, makes the Competition Authority look incompetent for approving Heineken's takeover of the company. However, there is a ray of light for the brewery, which is closing with the loss of between 100 and 200 jobs. Various media outlets have reported that SABMiller, a former partner of Beamish and Crawford, may be interested in buying the brewery from Heineken and continuing production of its brands from the site. The Government must state whether it has done any groundwork on this possible takeover. Has the Government contacted the interested parties with a view to saving as many jobs as possible? The Government must also state what it has done to ensure proper competition in the beer market.

I am particularly concerned at the behaviour of the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Coughlan, on the day the closure was announced. She failed to show any real concern about the Beamish closure when she was in Cork last Thursday. Instead, she was more concerned with swanning around other parts of the city and county where new jobs would be announced. Her goal was to take credit for the new jobs, none of which has yet been created, while avoiding any association with the brewery job losses.

The Government does not seem to value indigenous industry. Ministers do not seem interested in doing the hard work to help preserve local companies. Time and again, they seem more interested in attending photocalls for projects which have still not happened.

It may not be too late to act if the Government is innovative and committed. I am looking forward to hearing the Minister of State, Deputy Kelleher's, response tonight. So too are hundreds of families who are dependent on the actions of the Government. Cork will be a poorer and a sadder place this Christmas season with the closure of one of its traditional and historical industries. The loss to Cork city of a little piece of its heart with the closure of a centuries old brewing tradition on the landmark Beamish site is traumatic.

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

I thank Deputy Allen for raising this matter. Like him, I am disappointed to hear about the job losses at this particular company. It is a historic company, being one of the oldest trading in Cork. Beamish has been synonymous with Cork for many years. Historians have reported there was a brewing site on South Main Street for over 400 years and Beamish has been on that site for centuries. Cork people have a strong emotional attachment to the brewery not just regarding the Beamish brand, but also the generations that have worked there.

Last Thursday, Heineken Ireland briefed its Beamish and Crawford staff on the conclusions of its integration review process following the recent unconditional approval by the independent Competition Authority regarding the acquisition of Beamish and Crawford.

Having reviewed the capability and capacity of the Beamish plant, the company decided, for its own reasons, to consolidate production in Heineken Ireland's Leitrim Street brewery in Cork and to close the Beamish and Crawford Brewery next year. The key considerations the company took into account in reaching its decision included an investment requirement of approximately €15 million to meet international brewing standards, difficulty of expansion at the Beamish site, excess brewing capacity at Heineken Ireland and changing market dynamics, resulting in a declining beer market.

As a result of the integration of the commercial and administrative activities, up to 40 employees from Beamish and Crawford will transfer to Heineken Ireland and it is anticipated that approximately 120 people will be made redundant. This has been a difficult decision for the company to make since it began operations in Cork in 1983 when it acquired Murphy's Brewery. The company has already agreed comprehensive severance terms with the trade unions. It will also provide whatever outplacement support is required, as well as career counselling, job search training and pension advice to all the staff who will lose their jobs.

In April 2008, Enterprise Ireland met with Heineken Ireland to discuss how the agency might work with the enlarged Heineken operations in Cork to develop their potential. This was with a view to enhancing its export capabilities and to exploring new investment opportunities. Further discussions were deferred pending the strategic review of the merger operations in Cork. Subsequent to the recent decision by Heineken Ireland, discussions took place with the company and a follow-up meeting will take place shortly.

The State development agencies are adopting a co-ordinated approach in response to these job losses. IDA Ireland, Enterprise Ireland, FÁS and the county development board will be lending their assistance. This multi-agency approach is directed at assisting all the employees affected and seeks to enhance the future employment prospects of the workforce. The agencies will also support any individual who wishes to start his or her own business.

I accept the visit to Cork last week of the Tánaiste and Minister for Enterprise, Trade and Employment coincided with the Heineken Ireland announcement. However, her diary was organised for the announcement of 145 jobs in Option Wireless Limited in Kilbarry and up to 350 jobs at the Quinn Insurance call centre in Little Island some weeks before the Heineken Ireland announcement. It is unfair for the Deputy to suggest the Tánaiste and Minister for Enterprise, Trade and Employment was trying to camouflage the job losses at Beamish and Crawford.

Bernard Allen (Cork North Central, Fine Gael)
Link to this: Individually | In context

I did not say that. The Minister of State is misrepresenting what I said. She was within a stone's throw of the Beamish and Crawford brewery.

Séamus Kirk (Louth, Fianna Fail)
Link to this: Individually | In context

Please, Deputy. The Minister of State has a limited time slot.

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

Yes, she was, but at the time the staff were being informed by Heineken Ireland of the discussions with the trade unions and others on the merger.

It will be a sad day when brewing ceases on that site. All we can hope is that the agreed severance packages will be adhered to and that FÁS and other training agencies will assist those who have lost their jobs. In the meantime, we must ensure supports are given to Heineken Ireland so that it will be able to expand and open up new markets to ensure Our Lady's Well brewery will continue to prosper and provide employment.

Bernard Allen (Cork North Central, Fine Gael)
Link to this: Individually | In context

What about the SABMiller approach?

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

I accept that coming up to Christmas it is a difficult time for the families of those employees affected. Deputy Allen and I know people who work and have worked in Beamish.

I will inquire of the SABMiller approach and revert to the Deputy.